Answer:
Projects Y and Z
b. Projects W and Z
c. Projects W and Y
Explanation:
CAPM equation : Expected return = Risk free rate + Beta x (Expected market return - Risk free rate)
W = 4% + [0.85 x (11% - 4%)] = 9.95%
X = 4% + (0.92 x 7%) = 10.44%
Y = 4% + (1.09 x 7%) = 11.63%
Z = 4% + (1.35 x 7%) = 13.45%
Projects Y and Z have an expected return greater than 11%
b. Projects W and Z should be accepted because its expected return is higher than the IRR
c. Project W would be incorrectly rejected because the expected rate of return is less than the overall cost of capital (i.e. 9.95 is less than 11). But its expected rate of return is greater than the IRR
Y would be incorrectly accepted because its expected rate of return is greater than the overall cost of capital but its expected rate of return is less than the IRR
Answer:
- 2,600 textbook.
- 1,908 textbooks.
Explanation:
1. The equation is based on the past four years so in calculating the time period for Quarter 4 next year, the time period is:
t = (4 * 4 periods) + 4 periods next year
t = 20
Sales forecast is therefore:
= 2,120 + 24t
= 2,120 + 24 * 20
= 2,600 textbooks
2. The time period will be:
t = (4 * 4 periods) + 1 quarter
t = 17 quarters
Sales forecast:
= 2,120 - 620 + 24t
= 2,120 - 620 + 24 * 17
= 1,908 textbooks.
The kind of power that the project manager should try to use in this type of situation is an: expert power.
A project manager refers to an individual who is saddled with the responsibility of planning, controlling, maintaining, and managing a group of people (team members) that are working under him or her, especially for the execution of a project.
In Project management, a project manager has different kinds of power and these include:
- Formal (legitimate) Power
Expert power is one of the most effective kinds of power and it is typically possessed by a project manager that is a professional (expert) in a particular subject, field or project.
Since the project manager is working in a weak-matrix organizational environment and has no power or budget to reward her team members, she should use her expert power to oversee the complex custom CSM solution project.
In conclusion, the kind of power that the project manager should try to use in this type of situation is an expert power.
Read more on expert power here: brainly.com/question/25622349